Excel Applications for Accounting Principles

Business

Quiz 5 :

Bank Reconciliation Bankrec

Quiz 5 :

Bank Reconciliation Bankrec

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PROBLEM DATA Skye Boats deposits all receipts in a night depository after banking hours. The data needed to reconcile the bank statement as of October 31, 2011, have been extracted from records and are as follows: img img REQUIREMENT As treasurer, you have been asked to prepare a bank reconciliation statement as of October 31. Review the file called BANKREC that follows these requirements. The bank reconciliation as of September 30 is provided for you as a sample completed worksheet. You may need to refer to the September 30 bank reconciliation for information on outstanding checks.
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Open the file listed. In this problem, we reconcile bank statements and make the necessary adjusting entries. The beginning of the unedited file should look like this:
img

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PROBLEM DATA Skye Boats deposits all receipts in a night depository after banking hours. The data needed to reconcile the bank statement as of October 31, 2011, have been extracted from records and are as follows: img img REQUIREMENT Open the file BANKREC from the website for this book at cengagebrain.com. Enter the formulas where indicated on the worksheet. Prepare a bank reconciliation statement as of October 31. Assume that all errors are the depositors' fault. Checks 754-757 were for salaries; all other checks were payments to suppliers on account. The reconciliation is not complete until the difference between the adjusted balances (cell C45) is zero. Enter your name in cell A1. Save your completed file as OCT31. Print the worksheet. Also print your formulas. Check figure: Adjusted balance (cell E25), $9,996.60.
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Bank Reconciliation Statement:
It is the statement that provides the reason or explanations for the differences to be occurred or have been found in bank balance in Bank statement and bank account in the organization or company's books of accounts.
Certain examples of the differences likely to occur are:
• Checks issued but has not presented in bank.
• Bank Charges or service charges or NSF charges
• Cash or Checks directly d3eposited in bank account.
• Cash in transit etc.
BRS are prepared to ensure that the company's books of accounts are correctly recorded with the bank records.
It is always a good practice to reconcile your books of account with bank records on a frequent basis.
In the open worksheet file, record all outstanding debits and credits to reconcile the bank statement. When all transactions have been completed, the worksheet should look like this:
img Once the reconciliation is complete, the adjusted bank balance and the adjusted book balance should equal each other.

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PROBLEM DATA Skye Boats deposits all receipts in a night depository after banking hours. The data needed to reconcile the bank statement as of October 31, 2011, have been extracted from records and are as follows: img img REQUIREMENT In the space provided below, prepare the necessary adjusting journal entries.
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When the bank statement is reconciled with what is on the books, your spreadsheet will look like this:
img To account for the deductions and additions made by the bank that were not recorded on the books, you must make adjusting entries.
• For the note collected, we will need to debit cash for the total of $1,460 and credit notes receivable for the principal of $1,400 and also credit interest revenue for $60.
• For the returned check on insufficient funds, we will need to debit accounts receivable and credit cash for the amount listed.
• The bank service charge is probably listed under miscellaneous expenses so for this transaction we will debit miscellaneous expense and credit cash for the amount listed.
• The company made an error in its calculations by recording a check for $246.60 that was actually $264.60, a difference in $18.00. To remedy this error as a journal entry, we will debit sales for $18 and credit cash for the same amount.

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WHAT-IF ANALYSIS Erase all October data and use the worksheet to complete the following bank reconciliation at November 30, 2011: img Save your completed file as NOV30. Print the worksheet.
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CHART ANALYSIS Open the OCT31 file. Click the Chart sheet tab. On the screen, a column chart appears illustrating relative book and bank balances at July 31 and August 31. In the space provided below, list at least two reasons why the discrepancy between book and bank balances may have existed at July 31. a. b. Why may the discrepancy have existed at August 31 a. b. When the assignment is complete, close the file without saving it again.
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